Banana Cupcakes with Cream Cheese Frosting

3/4 cup granulated sugar -- divided
1/2 cup mashed ripe banana
1/4 cup butter -- softened
1 tsp vanilla
2 large eggs
1 cup all-purpose flour
1/2 tsp baking soda
1/4 tsp salt
1/4 tsp ground nutmeg
1/4 cup plain fat-free yogurt

Frosting:
1 3/4 cups powdered sugar
1/2 cup light cream cheese -- chilled
1/2 tsp vanilla
2 tbsp finely chopped walnuts -- toasted

1. Preheat oven to 350.

2. To prepare cupcakes, combine 1/4 cup granulated sugar and banana; set aside. Beat 1/2 cup granulated sugar, butter and 1 tsp vanilla at medium speed of a mixer until well-blended (about 3 mins.). Add eggs, 1 at a time, beating well after each addition. Add banana mixture to sugar mixture, beating well. Lightly spoon flour into a dry measuring cup; level with a knife. Combine flour, baking soda, salt, and nutmeg in a bowl, stirring well with a whisk. Add flour mixture to sugar mixture alternately with yogurt, beginning and ending with flour mixture; mix after each addition.

3. Spoon batter into 12 muffin cups lined with paper liners. Bake at 350 for 25 minutes or until a wooden pick inserted in center comes out clean. Cool in pan 10 minutes on a wire rack; remove from pan. Cool completely on wire rack.

4. To prepare frosting, beta the powdered sugar, chilled cream cheese, and 1/2 tsp vanilla at medium speed of a mixer just until blended (do not overbeat). Spread frosting over cupcakes, and sprinkle with toasted walnuts.